Apple boss reassures on stock woes

Apple CEO Steve Jobs advises employees and investors to 'hang in there' while markets down on fear of recession.

by
Jonny Evans| 29 Jan 08

Apple CEO Steve Jobs has stepped in to reassure company employees as its stock price takes a beating.

Investor reaction to Macworld Expo was negative this year, with Wall Street muttering in response to iPhone sales figures, and with confidence across all financial markets on strength of fears of a major recession to come.

The impact on Apple's stock price has been to slash 34 per cent from the value of the stock since 28 December. Stock closed at $130.01 per share last night, from $199.83 in December.

Analysts have also reduced their target price on Apple's stock, but continue to point out that the company remains well-positioned and fundamentally sound.

But with so many Apple employees also holding positions in the company's stock, Jobs moved to reassure them in a private email last week, reports AppleInsider.

"Wow, what a remarkable last few days," he wrote. "Our stock is being buffeted around by factors a lot larger than ourselves."

Jobs, who holds 5.54 million shares in the company, urged employees to stay the course: "I continue to believe that our fundamentals - our remarkable people, our clear and focused strategy, our new product pipeline, our 200 plus retail stores, our $18 billion of cash in the bank with no debt, etc., will serve us well in the coming months and years."

Jobs ended his letter urging investors to stick with the company which he said would benefit them back as market confidence is restored: "Hang in there," he said.